Volkswagen warns tariffs would hit US consumers, auto industry
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BERLIN, Jan 21 Reuters Volkswagen on Tuesday warned against the harmful economic impact of tariffs that U.S. President Donald Trump is proposing on imports from Mexico, where Europe39;s top carmaker operates a major factory.

The comments by the German autos giant, already grappling with high costs and cheap Chinese competition at home, reflect major uncertainty following Trump39;s threat to possibly impose duties of 25 on goods from Mexico.

While a firm decision has not been made, Trump said such tariffs could become effective from Feb. 1.

The Volkswagen Group is concerned about the harmful economic impact that proposed tariffs by the U.S. administration will have on American consumers and the international automotive industry, a Volkswagen spokesperson said in an emailed statement to Reuters.

We value collaboration and open dialogue. The Volkswagen Group looks forward to continuing its longstanding and constructive partnership with the U.S. administration, the spokesperson added.

Volkswagen shares were down 0.8, as European rivals also declined on the prospect of tariffs.

Volkswagen39;s Puebla auto factory is Mexico39;s largest and one of the biggest in the Volkswagen Group, making nearly 350,000 cars in 2023, including the Jetta, Tiguan and Taos all for U.S. export.

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